Soilbuild REIT's Eightrium in Changi Business Park (Photo: REITsWeek)

Soilbuild REIT has announced a distribution per unit (DPU) of 1.466 Singapore cents for its 2Q 2017, 6.3% lower that the 1.565 cents achieved in the corresponding period of 2016.

Gross revenue and net property income (NPI) for the period rose by 10.1% and 8.1% to SGD21.55 million (USD15.6 million) and SGD18.7 million respectively due to higher revenue from Bukit Batok Connection, West Park BizCentral, Solaris, Tuas Connection and Tellus Marine.

However this was partially offset by reduction in revenue from 72 Loyang Way, said the REIT, in reference to the property that was the subject of a legal action in 2016.

Read: Soilbuild REIT warns of possible DPU impact after terminating lease on 72 Loyang Way

For now, Soilbuild REIT has maintained its net property income contribution from 72 Loyang Way until May 2017 by utilising the security deposit received.

“Despite a soft industrial market, the leasing team has secured more than 110,00 square feet of new leases and completed more than 200,000 square feet of renewals and forward renewals in this quarter, raising portfolio occupancy to 92.6%”, said Roy Teo, CEO of the REIT’s manager in a statement on the results.

“With 7.6% of the portfolio NLA expiring in the second half of 2017, the key asset management focus remains to retain existing tenants and improve occupancy in the multi-tenanted buildings and 72 Loyang Way”, he added.

In 2Q FY2017, Soilbuild REIT’s secured leverage was 14.6%, with weighted average debt expiry at 2.3 years, and average borrowing cost at 3.37% per annum.

Units of Soilbuild REIT last changed hands on the Singapore Exchange at SGD0.74.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.